Do you know if your services are priced for profitability? If you believe they are then I want you to answer the question below honestly.
Is your bookkeeping up to date?
If your bookkeeping is not up to date then how do you know if you are actually priced for profitability?
Keeping your services priced for profitability is key to not only maintaining a profitable business but also being able to scale your business to reach your goals and be able to pay yourself on a consistent basis.
How can you achieve those goals when your business expenses are not up to date?
Here are 3 easy steps you can take to maintain accurate pricing for your services:
- Set up the auto-sync feature on your bookkeeping system. Almost all bookkeeping systems have the ability to sync to your bank account and import transactions. Setting this feature up will not only save you time but it will save you from data entry errors.
- Track time associated with services for yourself and for all contractors/employees. Time is one of those things that is hard to estimate and one of the biggest factors that business owners misjudge. By tracking time on services for 30, 60, and even 90 days you will have an accurate picture of how much time a service is taking and if you are accurately charging your clients.
- Setting aside time each month to review your financials. When you review your financials frequently, you’re able to immediately pinpoint issues and address them quickly. For example, you could catch an expensive subscription that you meant to cancel because a project ended and you do not need that for current projects. You could catch a double charge for an item.
These steps seem simple in theory, and they are, but they are often the steps that are not implemented because there’s not enough time.
What we suggest to our clients is to make one change at a time.
Implement the auto-sync feature first. This way it will save you the most time and allow for the most accuracy. Then implement the service time tracking. This will create the habit of doing this so you can make sure accuracy is maintained as team members change and prices from vendors change. Then set aside the time to review your financials at least once a month.
Making these small changes and implementing these steps will not only show you if you’re already priced profitably but will keep you priced right.
If you need more guidance on how to do this, have someone hold you accountable, or just want someone to do it all for you then all you have to do is click the button in the top right-hand corner of the site to book a call. We would be happy to talk with you and see which package would be the right fit for you and your business.
